When a Company Has Weaknesses Relative to Competitors Among Strategically

question 31

Multiple Choice

When a company has weaknesses relative to competitors among strategically important resources and capabilities,the appropriate strategic response is to:

• A)Invest heavy in order to upgrade weaknesses
• B)Diversify in order to find new areas of business where these resources and capabilities are unimportant to competitive advantage
• C)Outsource those activities where third parties can offer superior capabilities while positioning the business to reduce vulnerable to remaining weaknesses
• D)Employ management consultants to seek a solution.

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Definitions:

Line-and-Staff Structure

An organizational framework combining direct revenue-producing roles (line) with supportive roles (staff) to provide expertise and advice.